Should You Own Cryptocurrency?

Incorporating cryptocurrency into a portfolio may offer diversification and growth potential. Cryptocurrencies like Bitcoin and Ethereum may attract investors seeking high-risk, high-reward opportunities. However, their volatility can impact overall portfolio stability. To mitigate risk, you may limit crypto allocation to a small percentage of your total investments and focus on established cryptocurrencies.

Diversification within the crypto space may also help manage risk. Staying informed about regulatory developments and market trends is crucial. While crypto can enhance portfolio performance, you may balance it with more traditional assets for long-term financial objectives.

Diversification does not guarantee investment success.  Cryptocurrencies are certainly different from stocks and bonds, which isn’t a reason to own or not own.  Recently, the SEC approved the listing and trading of a number of spot bitcoin exchange traded product (ETP) shares.  Many custodians do not allow owning and trading cryptocurrencies directly.

Disclosure:   Cryptocurrencies are not legal tender and not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies.